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Thanks a lot for the information,Shathi!

Can we bargain on the interest rate?I never knew this.:bonk:rant.

I am learning a lot from you dear!:bowdown.

NOTE :Shanthi, I hope you remember we bought a flat at Mithilam.It is now over.Thanks to you and Natpudan for instigating me to bargain the rate of penalty.:bowdownThe builder has agreed to reduce and we we are yet to bargain with him.Had I not known from you I would have ended up paying the full penalty.:drowning

 

sasha,

yes. this is the subvention i was talking about.

and moreover aparna's dh works for a government organization that is given a preference rate.

at the same time, even for the 20lacs, some banks are willing to negotiate across the table one to one case.

but the rates are increasing. right now my bank has already increased from feb 10 and they are now offering 9.25 floating upto 10 years and 9.5 when the tenure is more than 10 years which is common across psu banks..maybe a little difference could be there when announced.

 

Bhuvi, i remember. happy that you could negotiate. I am in the process of buying a flat, and have ensured there is no penalty clause. that was one thing i have learned in the last 3 years. already from the first rate, there is a whopping 20% increase in steel prices and 10% on the cement..but i am all deaf when it comes to those grumbling as the builder will definitely have quoted the rate taking all this and his margin.

Yes, you can negotiate to an extent. prepayment gives you so much flexibility. i don't know about private banks but psu's have no prepayment penalty even if it is fixed. you can have 3 emi alerations in the whole tenure I think.

I just share what i learn.

 

Thanx shanthi ka.
DH is visiting bank today...

will let you know what happened..

 

Hi Ilites,

Pls help me to decide. We are processing to get loan for 22 lacs for 15 yrs (floating) either in IDBI or canara bank. Let me tell u there schemes.

IDBI : 8.25% for 2 yrs then afterwards current market interest rate.

Canara : 8.75% for 5 yrs, 9% for next 5 yrs and 9.25% for next 5 yrs( 10th to 15th yr)


Which scheme is good?.

IDBI has approved our loan since they want to close it today (march 31st).

Canara bank has not started the process yet, here the scheme is good but the problem is our new home construction has deviaitions from the approval plan. Initially, we tried in SBI but it got rejected bcoz of this reason.
Canara bank may also reject for the same reason but we have a hope that our opposite portion owner has taken loan in canara. so with this hope we are trying in canara bank.

Please tell me which scheme is best ?
Will the IDBI bank will wait till our confirmation (bcoz we need time to hear from canara bank)?.

 

rsam,

canara bank rates look good. but are you sure that you are going to get the approval. right now there are lots of stringent requirements by psu's.

IDBI that 8.25 is a teaser loan, and he has to close it under 31st. that is the reason he does not want to give you time.if you are sure the service is good then ...

you are in a catch 22 situation:spin. loud thinking...

what if there is a reduction in loan after 5 years. by then your loan could come into the 20lac.
what if you get a increment and are able to pay a part of the principal. even 50 thousand makes a dent in reducing the number of months from 180. then in case of idbi, though your interest rate varies, you can renegotiate at that time. but in case of canara bank, your interest rates are fixed.

 

Thankx Shanvy mam. Your inputs will really help us in taking a major decision. Thanks for the quick reply.

 

you are welcome rsam.

do update the reply from canara bank. and also which loan you opted.

Do write in a mail to the property plus column check out for the address in the website. to find what can be done about the deviation. if it involves spending some money, do it to be tension free later.

which area is it.. did you tell me before..i forgot to ask you.

all the best

 

Surely i ll update you. The flat is in MMDA colony, three storey building. our flat is in third fllor, three bedrooms with car parking.

i ll chk out the website and write to property plus.